PPF Calculator: Why Your Grandad Was Right About This One
I remember my first paycheck. I wanted to blow it all on a fancy phone, but my uncle sat me down and made me open a Public Provident Fund (PPF) account. At 22, fifteen years felt like a lifetime. Now, looking at how the compounding actually works on a PPF calculator, I finally get why old-school investors swear by it. It’s not about getting rich overnight; it’s about that "peace of mind" money.
The Magic of the 5th of the Month
Most people just dump money into their PPF whenever they have spare cash. Big mistake. If you use a calculator and compare depositing on the 4th versus the 6th, you’ll see a slight difference over years. Interest is calculated on the minimum balance between the 5th and the end of the month.
Provided info can be incorrect and change over a time! Please consult your financial advisor before taking any financial decision.
It sounds small, but over 15 years, you’re literally leaving free money on the table if you’re late every month.
Common Mistakes I See All The Time
- Ignoring the Extension: People think it ends at 15 years. You can actually extend it in blocks of 5 years indefinitely. The real wealth builds after year 15.
- Panic when rates drop: Even if rates fluctuate, the EEE tax status makes the effective return much higher than any taxable bank FD.
- Forgetting the ₹500 minimum: If you don't put in at least 500 bucks a year, your account gets discontinued and requires a penalty to revive.
Using a PPF calculator is honestly addictive once you start playing with the extension years. You see that jump from 15 to 20 years and realize that’s your retirement vacation fund right there. It’s boring, it’s slow, but it’s incredibly reliable.